|
2012�027G
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Bonower. If Borrower abandons the Property, or does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a notice from Lender to Borrower that the instuance carrier has
<br />offered to settle a claim, then Lender may collect the inc��nce proceeds. I.ender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The period of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled Payment of Principal and Interest;
<br />Late Charges and Funds for Tazes and Insurance or change the amount of the payments. If under the section
<br />titled Acceleration; Remedies, the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by tlus Security Instrument immediately prior to the acquisition.
<br />Preservahon, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on
<br />the Property. Bonower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun
<br />that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the
<br />lien created by tlus Security Instrument or Lender's security interest. Bonower may cure such a default and
<br />reinstate, as provided in section ritled Borrower's Right to Reinstate, by causing the action or proceeding to be
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Bonower's interest in
<br />the Properiy or other maxerial impairment of the lien created by this Security Instrument or Lender's security
<br />interest. Bonower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br />connection with the loan evidenced by the Note. If this Security Inst�vment is on a leasehold, Bonower shall
<br />comply with all the provisions of the lease. If Bonower acquires fee title to the Property, the leasehold and the fee
<br />ritle shall not merge unless Lender agrees to the merger in writing.
<br />Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnarion or forfeiture or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and
<br />Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
<br />over tlus Security Instrument, appearing in court, paying reasonable attomeys' fees and entering on the Property to
<br />make repairs. Although Lender may take action under this section, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this secrion shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall beaz
<br />interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender
<br />to Borrower requesting payment.
<br />Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for
<br />any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall
<br />pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in
<br />effect, at a cost substantially equivalent to the cost to Bonower of the mortgage insurance previously in effect,
<br />from an alternate mortgage insurer approved by Lender. If substa.ntially equivalent mortgage insurance coverage is
<br />not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage
<br />insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender
<br />will accept, use and retain these payments as a loss reserve in lieu of modgage insurance. Loss reserve payments
<br />may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the
<br />period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.
<br />Bonower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br />until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower
<br />and Lender or Applicable Law.
<br />Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
<br />give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Bonower. In the event of a partial taking of the
<br />Property in wluch the fair market value of the Property immediately before the taking is equal to or greater than
<br />the amount of the sums secured by this Security Instrument immediately before the talcing, unless Bonower and
<br />Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of
<br />the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br />taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance sha11 be
<br />paid to Bonower. In the event of a partial taking of the Properly in wluch the fair market value of the Property
<br />immediately before the talcing is less than the amount of the sums secured immediately before the taking, unless
<br />Borrower and I,ender otherwise agree in writing or unless Applicable Law otherwise provides, the proceeds shall
<br />be applied to the sums secured by this Security Inst�t�ment whether or not the sums aze then due.
<br />a 2004-2011 Compliance Syatems, Iac. ADCD-3392 - 2010L1.15.461
<br />Coesumer Real Estate - Seattity Instrument DL2036 Pege 3 of 6 www.compliancesystems.com
<br />
|